JUDGMENT - D.R. DHANUKA, J.:---The petitioner carries on business in the name and style of M/s. Hotel Sunraj situate at Bandra, Bombay, as Sole Proprietress thereof. The said restaurant is situate at a distance of about 65.54 Sq. metres from St. Elaisis School and the Church.

2. On or about 7th August 1987, the petitioner made an application to the Collector of Bombay, Prohibition and Excise Department for issue of a licence popularly known as `Permit Room Licence' (i.e. F.L. III Licence) under Rule 45 of the Bombay Foreign Liquor Rules, 1953 for sale of foreign liquor etc. at the abovereferred restaurant. The Deputy Superintendent of Prohibition and Excise by name of Shri Ghodke visited the restaurant and made his report to the Superintendent of Prohibition and Excise. On 9th December 1987, the Government of Maharashtra informed the Commissioner of Prohibition and Excise that the Permit Room Licence known as FL-III Licence be granted to the petitioner on the conditions set out therein. Condition No. 2 prescribed by the Government of Maharashtra in the said Order of sanction reads as under :

"There should be no approved educational institution or registered religious institution or b

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